CFDA medical network on June 2 - recently released 2016 annual statistical annual report on the food and drug supervision, data show that a legal wholesaler for 11794, 1181 wholesale enterprises. And go on to push for a year, the figure is a legal wholesale enterprise, 11959, 1549 wholesale enterprises, according to the contrast figure, it is not hard to find, only in the past year, there have been 533 medicine circulation enterprises. 

 

At the end of last year, the "healthy China 2030" planning outline, which in medicine industry, points out that should promote transformation and upgrading of medicine circulation industry, and improve the circulation market concentration, the formation of a group of multinational large medicine circulation enterprises. Under the two-ticket, and growing, government, the consensus is that 10,000 of China's 13,000 wholesale businesses will be eliminated by the market. 

 

So how will the 10,000 drug companies be eliminated? Which businesses will be out in the right place? Where is this 10,000 businesses going? 

 

How will the pharmaceutical companies disappear? 

 

Undoubtedly, the implementation of the two ticket system and the increase of the battalion is to eliminate the big killer of the scattered circulation enterprise. 

 

Although the two votes is everyone is focused on industry policy over the past two years, but the real value of the enterprise or in advance the layout of the enterprise is not much, because of the concept of two votes and policy has already started as early as 10 years ago, in 2007 in guangdong province issued a "medical institutions in guangdong province for medicines online price bidding sunshine procurement implementation plan, the plan calls for" all varieties in principle distribution directly by the dealers, manufacturers directly to the dealer invoice, through regulation bill to regulate drug order ". At the time, companies began calling it "the second ticket", which was thought to be a more aggressive tactic than the price limit. 

 

Of course, the policy was so poorly implemented that there was little attention in the industry. Until a decade later, at the end of 2016, the central deep reorganization meeting again in 31 "two votes", to carry out the political basis for policy, industry truly realize two votes has really come. 

 

But how does the two-ticket system make the circulation business disappear? The province of fujian is the earliest implementation of two votes, in June 2014 was released in 2014 by the fujian province medical implementation opinion "bid for drug centralized bid procurement, cancel the shard area distribution mode, implement the provincial unified distribution, strictly implement the" two votes "policy. 

 

In terms of implementation, fujian requires no more than 10 purchasing and distribution enterprises in all procurement areas. Fujian provincial food and drug administration was selected to identify 11 basic drug distribution enterprises with the qualification of provincial and non-basic drug distribution. The basis medicines of each purchase area are chosen from 11 homes, and non-basic drug distribution companies must choose from 11 homes for more than 3. 

 

The policy execution, in addition to the above 11 companies, the rest must be excluded outside the mainstream market, the original while some might also secretly do some small business, but after all, the market is extremely limited, in the end, the smaller the business until out of business. , according to data in fujian province before the execution of two votes drug distribution reaches more than 170, but the execution of two votes two years later, in 2016, fujian distributors only 40 or so, 77% of the pharmaceutical business company to be eliminated. 

 

In the case of fujian, the power of the two is not small. Now, in addition to jiangxi, shandong, henan, xinjiang and Tibet five provinces (autonomous regions) is not a specific plan and execution time of two votes, 26 provinces have enacted the official documents of two votes. 

 

Though the content is not the same in 26 provinces execution of two votes, and the period of transition to the enterprise, but from the state of two votes as the top design, the content of the reform on the execution to fujian is the trend of The Times. According to the fujian 77% selective, so two or three years later, the whole medicine circulation enterprises will achieve the industry said China's only need 3000 around the goal of pharmaceutical commercial enterprises. 

 

Which enterprises will disappear first? 

 

On June 19, 2016, the largest pharmaceutical and commercial enterprise in qingyuan, guangdong province, announced the announcement of the dissolution of the company. Announcement: "the company has experienced the economic downturn in recent years, rising costs, volume shrinking, and other difficulties, while the company took a variety of remedial measures actively, but still failed to reverse the situation. Because of this, have to decide to dissolve." 

 

The fall of Mr Elkan epitomises the reform of commercial circulation. It is not hard to see that the largest number of non-corporate wholesale companies in the past year have been reduced. As "two votes to add + + camp check list" circulation industry, such as a number of policy advancement, mainly small-scale market agent business enterprises die. 

 

Is a two-ticket system the only way to weed out companies? Of course not, the eighth China medicine in E medicine managers entrepreneurs attended the annual meeting and medicine industry innovation on the BBS, 2016, wu zhen, deputy director of the CFDA has said that mess in pharmaceutical circulation field is more, one is the circulation enterprises too much, the other is the personnel engaged in sales too much. Previously, he said, all think Chinese medicine business concentration is too high, but in fact now concentration is not high, 80% PiFaLiang concentration in the top 100 enterprises, according to the data, according to the laws of market economy, wholesale enterprises should not be left so much, could not have so much, because live. 

 

Wu thinks "live", is the cause of the drug market scale of less than 2 trillion in China, is commonly used in accordance with the previous industry of China has 1.3 medicine business enterprise computing, if 80% of sales in the top 100 enterprises, the remaining 12000 - odd carve up only 20%, so these companies but 230 million average sales. Wu was pointed out, "you also know that the wholesale enterprise's profit margin is 1%, if management slightly relax, then creditors. Calculated according to the proportion, the wholesale enterprise can't live, natural out. But we found that these wholesale enterprises not only alive, and live well, live very natural and unrestrained. Show this paradox is that the law of market economy in the field of drug circulation failure, instituting wins out, LieZhe eliminated not, this is a phenomenon." 

 

In the face of this, the CFDA is not the subject of two bills, but one is vigorously supporting the two bills and cooperating fully on the regulatory side. On the other hand, the CFDA in its main area, the big step elimination, is through the authentication of GSP, fly check form to be eliminated. In other words, an enterprise with an average of about 30 million yuan will be a key tracking company for the CFDA, which will revoke the GSP certificate once it is violated. 

 

According to public figures show that 2016 CFDA dropped but a total of more than 2016 pieces of GSP certificate, but since this year according to incomplete statistics, the country already has 320 enterprises of GSP certificate has been revoked. In hebei province, 94, 51 in guangdong province, 43 in shandong province, 25 in jilin province and 19 in gansu province. While some of these are retail businesses, medical businesses are losing out in the big picture. 

 

From the point of data, it is not difficult to find that, in turn chaos, medicine circulation at the national level have their overall train of thought, between various departments are forming force, increase the speed of rejecting what "freak" against law of market economy. And from the point of the current situation, 2017 will be two votes of the full implementation of a year, the CFDA will also intensify fly inspection, as soon as possible let annual revenue of 30 million yuan of enterprise. 

 

Where is the way out? 

 

Two bills have come, and many businesses have gone. But there is no denying that there is a new opportunity in the turbulent and turbulent times, and the transformation of the internal reform of the enterprise should be carried out as an enterprise. 

 

For pharmaceutical commercial enterprises, according to the execution of two votes, the lack of variety resources and terminal hospital cover the lack of regional small and medium-sized businesses to become the first exit, and with the regulation (flying inspection + paper investigate) increase, part of the normative enterprise will also launch market gradually, and has the advantages of strong upstream and downstream resources leading business will win in this round, the future will form its, China resources, prescription, kyushu national commercial company + N provincial regional leading commercial pattern. 

 

Where is the corporate road to be eliminated? In the previous data, the failure would be part of it, but the proportion would not be large, and the majority would have three options: 

 

First be CSO agency agents, but this kind of situation for the moment, the specification is still not be the object of the reorganization of the regulators, so choose to do CSO agency agents as the transformation of the enterprise, must go straight the road, or the appearance of the future will still be now. 

 

The second option is to become a major player in a large distribution enterprise, rapidly becoming a major player in some large commercial companies that have not yet perfected the layout of the province. 

 

Third from trend judgment and elimination, every province will focus on the 30 high-quality distributors hand up and down, as long as the company quickly in the sequence, may be managed a desperate, and the rapid means by means of capital to cover of the terminal, such as mergers and acquisitions of smaller distribution enterprises occupy the hospital port, or through the pharmacy trusteeship. 

 

Of course, this round of reform is not something to consider, but something that all companies in the field should consider. For manufacturers, the two-fare implementation will not face immediate risk of disappearing, but it must have its own set of new responses. 

 

In this plan, the first of these is a surge in the difficulty of accounting, how do they get in and how the money goes out? How to avoid the increasing financial and legal risks? 

 

Followed by the increase in cost of sales, which involves the cost of business management, marketing mode for die cost of bad debts, tax sharing costs (high tax contribution, strike a balance invoice contribution, start a company cost allocation). 

 

The third is that marketing is harder. The number of primary distribution businesses has increased greatly, and the channel management has become more difficult. The hybrid model co-exists and the different agents in the unified region share the distribution business. The third end of the business selection problem is outstanding. 

 

The fourth is the dramatic change in the business cycle. In the short term, it may be because of the two-ticket execution, in which distribution business sacrifices cycle time for distribution rights; But it has long been an extended trend, with distributors gradually taking over the market monopoly, leading to a longer cycle of business returns. 

 

When the two bills were made 10 years ago, many people didn't take it personally, and the whole country was in the process of getting ready for business. While it may still be possible to survive a year and a half, if it is excluded from the mainstream medical market for a long time, there is no way out of nowhere.